Tape Reading

Tape reading is the practice of analysing the real-time stream of individual trade transactions — the price, size, and timing of each executed trade — to gauge the balance of buying and selling pressure and infer the likely short-term direction of price movement. The term originates from the stock ticker tape used in early 20th-century trading floors. Modern tape readers study the Time and Sales (T&S) data and Level 2 order book on trading platforms, looking for patterns such as large block trades at the bid or ask, absorption of selling by buyers, and aggressive order flow. Tape reading is a skill-intensive, short-term trading discipline practised primarily by scalpers and intraday traders in liquid instruments like Nifty futures.